Thank you, Mr. Chairman. I am pleased to present the Department of Industry, Tourism and Investment main estimates for the fiscal year 2006-2007.

In total, these main estimates propose total operational expenses of approximately $37.9 million for the coming fiscal year and that is an overall net increase of $2.961 million, approximately 8.4 percent over last year's budget.

To set the context of your deliberations on this proposed budget, I would like to comment briefly on four key elements:

- our present economic environment/climate;

- the work of the Mackenzie Valley pipeline office;

- our continued commitment to the traditional economy; and

- new initiatives we've identified to foster economic diversification and growth for communities and businesses across the Northwest Territories.

Present Economic Climate

Mr. Chairman, for the first time, the gross domestic product of the Northwest Territories, an indication of economic performance, passed the $4 billion mark this year. A major contributor to this economic growth has been business spurred by resource development.

The private sector has become increasingly prominent in the NWT, replacing government as the primary driver in our economy. Independently owned small businesses are key to the growth in our economy and we continue to work with this sector to determine how we can best support their efforts.

As an example, Mr. Chairman, our small business corporate income tax rate, at four percent, is well below the national average. In an effort to improve the business climate in the NWT and help attract necessary investment, the Minister of Finance recently announced that the NWT's corporate income tax rate on large corporations will be reduced to 11.5 percent effective July 1, 2006.

Our territorial economy continues to grow and our future is bright. The potential for much more economic development is on our doorstep.

It will be our role, as government, to ensure that we can capitalize on the opportunities future development will bring.

The Mackenzie Gas Project

The Mackenzie gas project is a good example, Mr. Chairman. If approved, this will be the single largest resource development project in the history of the NWT.

We recognize the Mackenzie gas project as a critical element in building a strong NWT economy and providing residents with opportunities and choices to improve their long-term economic, culture and social well-being.

Through the Mackenzie Valley pipeline office, the Department of Industry, Tourism and Investment is contributing to programs, funding to help residents and communities prepare for the challenges and opportunities the proposed Mackenzie gas project will bring.

The Resource Pre-Development Program is a good example, a $4 million joint funding arrangement with industry, the federal government and our government. This program provides funding to allow organizations to participate in negotiations with the project's proponent.

We also support aboriginal ownership of the proposed Mackenzie gas pipeline by providing funding to the Aboriginal Pipeline Group.

The Traditional Economy

As Members of this House have stated, our support for the NWT's traditional economy is an important component of our economic strength. For participants in this sector, the traditional economy provides a secure, stable source of food, fuel, shelter and clothing. Programs such as the Genuine Mackenzie Valley Fur Program help to reduce the economic gap between large and small communities in the NWT. I am pleased to note that the number of NWT residents engaged in trapping is on the rise. Fur prices are rising. Success in introducing a new generation to trapping is being achieved in the regions with initiatives like the Take a Kid Trapping Program.

New Initiatives

I would like to highlight some of the departments' new initiatives.

Two major components of the Mackenzie gas project have come to the forefront in recent weeks: the GNWT's participation in the National Energy Board's regulatory process and the Joint Review Panel's environmental assessment process.

The need for added resources and capacity to participate in these two new processes is reflected in budget requirements for new funding.

In the interests of our residents, we are working to advance key interests as interveners in the National Energy Board process.

The development of the Mackenzie gas project is a "basin-opening" initiative, which will spearhead the development of other NWT gas reserves in addition to the proponent's anchors fields in the Mackenzie Delta. This project can allow us to capitalize on the potential for the future expansion of this development and to maximize the return to the residents of the NWT.

However, NWT residents expect the GNWT to ensure their interests are pursued before the Joint Review Panel. We are also advancing many of these interests through the negotiation of a strong socio-economic agreement that formalizes the proponent's commitments to employment, to training and business opportunities, and to the protection of community and cultural well-being for all of our residents.

Another key, Mr. Chairman, to furthering oil and gas development in the Beaufort-Delta region will be the establishment of expertise in the region itself. This budget includes an allocation of funding for the creation of an oil and gas sub-office in Inuvik to include both a manger of oil and gas activity and an oil and gas development advisor.

---Applause

While a Mackenzie gas project can open the door to a new era for our northern economy, diversification beyond resource development remains a challenge.

For that reason, ITI has been working on a new initiative with the NWT tourism industry to capitalize on our tremendous potential. The investment for this plan, Tourism 2010, is included in this budget.

We propose an investment of an additional $5 million over the next five years into the NWT tourism industry. We anticipate the public and private partnerships will leverage up to $10 million more over the same time period.

The Tourism 2010 plan includes $400,000 for NWT Tourism to supplement the existing $1.2 million already provided for marketing. It anticipates expenditures of up to $125,000 in regional product development and provides up to $300,000 to develop tourism attractions in more remote locations.

Tourism 2010 will also provide training for NWT tourism businesses, provide up-to-date research and planning

information on trends and on activity levels to guide industry planning and marketing.

We have further supported Tourism 2010 by allocating an additional $120,000 to NWT Tourism to offset increasing overhead and operating costs. We've also embarked on a series of legislative initiatives to streamline and promote an economic environment that will allow our tourism sector to flourish.

We are also supporting artists and cultural performers to attend the Canada Winter Games, so they can use this event to gain valuable experience and showcase their products and talents to national and international audiences.

When this government established the Department of Industry, Tourism and Investment last year, it was to focus and streamline government support to northern businesses and to ensure communities are better positioned to take advantage of growing opportunities presented by our rapidly emerging economy.

Economic development officers play a key role in supporting business and prospective entrepreneurs in communities and this budget will supplement the community transfer initiative that funds these positions by approximately $600,000.

Funding for the Business Development and Investment Corporation will also continue to reflect our commitment to the concept of one-window delivery for business development programs. Business program review currently in progress is aimed at increasing the relevance and effective delivery of business support programs across the NWT.

I would like to thank Members of this Assembly for your guidance and for your insight in the development of our main estimates. I am confident they will allow us to build on our new foundation, also to invest in the programs and services necessary to seize the opportunities we have available to secure a prosperous future for all our residents. Thank you, Mr. Chairman.